[kasko]

could anybody please explain to me the benefit of income splitting in TFSA ■An opportunity for income splitting where couples now have double the TFSA room to play with.
I do not understand clearly the benefit of it. If I would like to contribute to my wife's portion with my income. the contribution is not deductible.
I am missing point here. Please clarify.

Thank you.

 

[ghostryder]

Let's compare:

You give your wife cash and she puts it in non-registered investments. Any interest & dividends earned on that investment gets attributed back to you for tax purposes. You (not your wife) have to pay taxes on the gains.


You give you wife cash and she (or you) put it in her TFSA. All gains inside the TFSA are tax free, and the attribution rules do not apply.

 

[kasko]

thank you

thank you for the response. i thought there is something more into it. sometimes simple things are complicated. mea culpa.
once again thank you.